Feeds

Take-over talk targets Newbridge

Latest fall in share price prompts increased speculation

  • alert
  • submit to reddit

Mobile application security vulnerability report

Newbridge Networks could become the target of a take-over bid in the wake of its falling share price and multiple profit warnings. There have been five profit warnings from Newbridge in the last eight financial quarters and its share price dropped to $28 7/8 this week, according to a report in the Financial Times. The lower share price, coupled with the company’s position in the market could make it attractive to a number of companies in the networking and telecomms sectors, sources have said. Manny Pinon, sales and marketing manager of Newbridge distributor Norwood Adam, said Newbridge was always likely to be a target, but doubted whether any potential take-over bids would ever succeed. “It’s not quite big enough to fend off all potential challenges and because of its strength in key markets, it will always attract this sort of attention. Companies like Cisco, Siemens and Lucent spring to mind as maybe being interested.” But anyone wanting to buy Newbridge would need to have deep pockets or an understanding banker, Pinon said. “Terry Matthews (Newbridge’s CEO and majority shareholder) would have to be bought out for any acquisition to go through. He’s going to be looking for a substantial payout.” Matthews is reputedly the wealthiest man in the IT industry. “He doesn’t need to sell and he still takes a very active interest in the business,” Pinon said. “I don’t think the market has really taken that into consideration. Yes the share price has fallen but a take-over of Newbridge wouldn’t necessarily be that straightforward.” Other speculation from sources close to Newbridge, suggests that the company will see out another full financial year before considering putting itself up for sale. “The European channel could probably have shifted 25 per cent more Newbridge product in the last quarter of last year,” the source said. “They’ve had a tough year, admittedly, but there’s been a lot of changes and I think there’ll be a real push this year to put things straight.” ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.